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The Stock Market Crash Of 2016: Stocks Have Already Crashed In 6 Of The World’s 8 Largest Economies

June 17, 2016

Network-Earth-Continents-Public-DomainBy Michael Snyder

Over the past 12 months, stock market investors around the planet have lost trillions of dollars. Since this time last June, stocks have crashed in 6 of the world’s 8 largest economies, and stocks in the other two are down as well. The charts that you are about to see are absolutely stunning, and they are clear evidence that a new global financial crisis has already begun. Of course it is true that we are still in the early chapters of this new crisis and that there is much, much more damage to be done, but let us not minimize the carnage that we have already witnessed.

In general, there have been three major waves of financial panic over the past 12 months. Late last August we saw the biggest financial shaking since the financial crisis of 2008, then in January and February there was an even bigger shaking, and now a third “wave” has begun in June. Not all areas around the globe have been affected equally by each wave, but without a doubt this new financial crisis is a global phenomenon.

The charts that I am about to show you come from Trading Economics. It is an absolutely indispensable website that is packed full of useful data, and I encourage everyone to check it out.

Let’s talk about China first. The Chinese economy is the second largest on the entire planet, and since this time last year Chinese stocks are down an astounding 40 percent…

As things have started to unravel in China, the Chinese have been selling off U.S. debt and U.S. stocks like crazy. The following comes from Bloomberg…

(CHECK OUT LINK FOR CHARTS: http://www.activistpost.com/2016/06/the-stock-market-crash-of-2016-largest-economies.html)

For the past year, Chinese selling of Treasuries has vexed investors and served as a gauge of the health of the world’s second-largest economy.

The People’s Bank of China, owner of the world’s biggest foreign-exchange reserves, burnt through 20 percent of its war chest since 2014, dumping about $250 billion of U.S. government debt and using the funds to support the yuan and stem capital outflows.

While China’s sales of Treasuries have slowed, its holdings of U.S. equities are now showing steep declines.

Unfortunately for China, their economy just continues to slow down, and George Soros is so alarmed by this and a potential “Brexit” that he has been selling off stocks and buying enormous amounts of gold in anticipation of an even bigger global downturn.

Japan has the third largest economy in the world, and over the past year Japanese stocks are down a total of 26 percent from the peak…

Personally, I have been extremely alarmed by what has been happening in Japan lately. Japanese stocks were down almost 500 points last night, and overall the Nikkei is down a whopping 1,800 points so far in June.

Of course the Japanese economy as a whole is essentially a basket case at this point. For a detailed analysis of this, please see my previous article entitled “Watch Japan – For All Is Not Well In The Land Of The Rising Sun.”

Germany has the fourth largest economy in the world, and over the past year their stocks have fallen 19 percent from the peak of the market…

The key thing to watch for in Germany are serious troubles at their biggest bank. I wrote a long article about the slow-motion implosion of Deutsche Bank last month, and just this week Deutsche Bank stock hit an all-time low.

The fifth largest economy on the planet belongs to the United Kingdom, and since last June their stocks have fallen about 13 percent…

One week from today, the “Brexit” vote will be held in the UK, and if they vote to leave the EU that could have very serious economic and financial implications for them and for the rest of Europe as well.

France has the sixth largest economy in the world, and over the past year French stocks are down 20 percent from the peak of the market…

The French economy is really struggling these days, and we have not heard much about it in the U.S. media, but there have been tremendous riots in major cities in France in recent weeks.

The seventh largest economy on our planet belongs to India. Even though India is facing some very serious economic problems, their stocks are doing okay for the moment. Even though stocks in India are down over the past 12 months, we have not seen a major financial crisis over there just yet.

But there is definitely a major crisis in the eighth largest economy in the world. Italian stocks are down a staggering 32 percent from the peak of the market. That means approximately a third of all stock market wealth in Italy is already gone…

Earlier this year, I wrote about the horrifying collapse of the Italian banking system that has greatly accelerated since the start of 2016. It looks like virtually all of their big banks will ultimately need to be bailed out, and this threatens to become a far bigger crisis than the crisis in Greece ever was.

And let us not leave off the ninth largest economy in the world. Not too long ago, CNN ran an article entitled “Brazil: Economic collapse worse than feared.” So not only are they admitting that the ninth largest economy on the globe is collapsing, they are also admitting that it is even worse than what the experts had anticipated.

So did I leave anyone off the list?

Ah yes, I haven’t even addressed what has been going on in the United States yet.

U.S. stocks did crash last August, but then they recovered.

Then they crashed again in January, but then they recovered again.

Now U.S. stocks have been taking another tumble here in June, but we are being assured that there is nothing to worry about.

Meanwhile, the underlying numbers for the U.S. economy just continue to get worse and worse and worse.

Hopefully this article will clear a lot of things up. In this piece, I have presented undeniable evidence that a new global financial crisis has begun over the past 12 months. We have not seen global stock declines of this nature since the great financial crisis of 2008, but much worse is still to come.

I would love to be wrong about that last part.

It would be wonderful if the worst was now behind us and good times for the global financial system were ahead.

Unfortunately, every single indicator that I am watching is telling me just the opposite.

All government, in its essence, is a conspiracy against the superior man: its one permanent object is to oppress him and cripple him…The most dangerous man to any government is the man who is able to think things out for himself, without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane and intolerable, and so, if he is romantic, he tries to change it. And even if he is not romantic personally he is very apt to spread discontent among those who are.
– H.L. Mencken

It does not take a majority to prevail but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men.
– Samuel Adams

I believe it is the duty of every single American citizen to sit down and watch the following mini-documentary. In just 45 minutes, you will learn more about the state of the union and the world around you than decades of schooling and mainstream media could ever provide. Ignorance is not bliss, and if it weren’t for the blinding levels of ignorance pervasive in modern society, we wouldn’t find ourselves in this current deplorable state we’re in — on a knife’s edge between manageable serfdom and total tyranny.

No one in American society is supposed to be immune from criminal prosecution, yet the Justice Department in the Obama administration took it upon themselves to grant such immunity to the mega banks and their employees. This is a tale of the traitors operating within the highest levels of the U.S. government, and it is a saga of how the rule of law was openly torched in front of our very eyes.

Readers often ask me “what can I do to help.” Here’s what you can do. You can watch this video, then send it to every single person you know and plead with them to watch it. If necessary, make it a point to to sit with them and watch it. That’s how important this is.

Until justice is served, this nation will never heal. Economically, culturally or spiritually.

All of a sudden, the Nasdaq is absolutely tanking. On Monday, it fell more than 1 percent after dropping 3.6 percent on Thursday and Friday combined. At this point, the Nasdaq is off to the worst start to a year that we have seen since 2008, and we all remember what happened back then. So why is this happening? In recent years, the Nasdaq has been ground zero for “dotcom bubble 2.0”. The hottest stocks in the entire world are on the Nasdaq – we are talking about stocks like Yahoo, Netflix, Apple, Tesla, Google and Facebook.

Those stocks have gone to absolutely incredible heights, but now they are starting to fall. Some are blaming insider selling, and without a doubt the “smart money” is starting to flee the stock market. Just check out this chart. Others are blaming low expectations for first-quarter earnings or the tapering of quantitative easing by the Federal Reserve. But whatever is causing this decline, it is starting to get alarming. The Nasdaq just experienced its largest three day fall since November 2011.

No stock can resist gravity forever. What goes up must eventually come down. This is especially true for stock prices that become grotesquely distorted.
On Wall Street, a price to earnings ratio of 20 to 25 is usually considered fairly normal. In recent years, the price to earnings ratios for many of these “hot tech stocks” have gone way, way beyond that. For example, posted below is a screen capture from Bloomberg TV that was featured in a recent Zero Hedge article…

There is no way in the world that such valuations are justified.

We have been living in another dotcom bubble, and it was inevitable that it was going to burst at some point.

The following is how one financial industry insider described the carnage that we have seen on the Nasdaq over the past few days…

Gary Kaltbaum, president of money-management firm Kaltbaum Capital Management, describes the carnage of once high-flying “growth” names in the Nasdaq composite, that have come crashing down to earth: “The best we can describe what we have been recently seeing in ‘growth-land’ is a 50-car pileup,” Kaltbaum told clients in a morning research note. “Call them what you want … risk areas, growth stocks, froth areas … they are melting away.”

And of course it isn’t just the Nasdaq that has been seeing declines over the past few days. On Monday, some of the biggest names on the Dow also fell precipitiously…

Visa, Goldman Sachs and Boeing are among the biggest drags on the Dow Monday, falling 2.1%, 2.9% and 1.4% respectively. Weakness in these stocks is especially problematic since the Dow gives greatest weight to the stocks with the highest per-share prices. And at $203.41, $158.56 and $125.59 respectively, Visa, Goldman and Boeing are the stocks that really matter to the measure.

And the trouble in these stocks isn’t just today. So far this year, Visa is down 8.7%, Goldman is off 10.5% and Boeing is down 8.0%.

This recent decline has many analysts groping for answers.

Some believe that it is simply a “rotation” as investors leave growth stocks that have become overvalued and move into safer, more traditional stocks.

Peter Boockvar, chief market strategist at Lindsey Group, believes it’s all about the Fed. “I’m still amazed at the complacency with the Fed taper, and a lot of people still don’t think it’s a big deal,” he said. “I just don’t think it’s a coincidence that the high-fliers are getting popped when the Fed is half way done with QE. We’ve got tightening smack in front of your face with the taper.”

Once the Fed begins to truly reduce its massive bond buying program later this year, markets could see a quarter of their value wiped off the books, a private equity pro told CNBC on Friday.

Jay Jordan, founder of the Jordan Company, issued the dire warning during an interview on CNBC’s “Squawk Box,” saying a 25 percent drop could extend to all asset classes. He blames the monetary policies of former Fed chair Ben Bernanke for artificially inflating asset prices through super-low interest rates.

Yet others point to the fact that we are now moving into earnings season, and it is being projected that corporate earnings will come in at very poor levels. In fact, it is being estimated that overall earnings for companies in the S&P 500 for the first quarter will be down 1.2 percent.

So what should we expect to see next?

Whether it happens this month or not, at some point a massive stock market correction is coming. In recent years, the financial markets have become completely and totally divorced from economic reality, and that is a state of affairs that cannot last indefinitely.

Many have compared the current state of affairs to 2008, but to me what is happening right now is eerily reminiscent of 2007. The Dow soared to record heights quite a few times that year, but there were constant rumblings of economic trouble in the background. Stocks began to drop steadily late in the year, and 2008 ultimately turned out to be an utter bloodbath.

I believe that what is happening right now is setting the stage for another financial bloodbath. I truly believe that we will look back on this two-year time period and regard it as a major “turning point” for America.

And as I have written about previously, we are in far worse shape as a nation than we were back in 2008. We have far more debt, the “too big to fail banks” have a much larger share of the banking industry, the derivatives bubble has gotten completely and totally out of control, and our overall economy is far weaker than it was back then.

In other words, we are now even more vulnerable. When the next great financial crisis strikes us, it is going to be absolutely crippling.

Continued shutdown, paralyzed politicians reveal just how close the U.S. government is to total collapse

(NaturalNews) Anyone looking for evidence of the impending total failure of the U.S. government need look no further than the shenanigans taking place right now in Washington D.C.

To summarize:

• As the nation hurtles toward an inevitable debt collapse, the Obama administration insists the answer is to pile on more debt by raising the debt ceiling. Anyone who disagrees with this is being characterized an “anarchist.”

• Unless the debt ceiling is raised, the U.S. Treasury will default on hundreds of billions of dollars in debt obligations in less than a month. Such a default would absolutely wreck the credit worthiness of the USA, causing the future debt burden to start wildly multiplying in a runaway mathematical blowout that can only end in financial collapse.

• Obamacare, a broken system of coerced, unconstitutional health insurance mandates, is already causing widespread economic disaster across the country as tens of millions of people are losing their jobs, having their hours cut, or seeing their company-sponsored health plans cancelled. But the socialist philosophy of Obamacare is so central to the political left that they are viciously defending it at all costs. If Obamacare fails, the socialist fantasies of the left go down the drain with it, and they can’t let that happen… not even if it means medically bankrupting millions of Americans thanks to the outrageously high costs of health insurance everyone is now forced to buy.

• As political leverage in all this, the federal government is supposedly “shut down,” but the IRS is still collecting money, the TSA is still groping travelers at the airport, and billions of dollars in government waste is still accruing each week. To make the shut down appear worse, the Obama administration erected tall barriers around World War II veterans’ memorials, desperately attempting to dramatize the shut down while blaming the Republicans. (This also shows the utter disrespect for American veterans who fought for the very freedoms Obama seems to enjoy destroying at every opportunity.)

• The mainstream media, ever the pathetic defenders of failed “hope and change” rhetoric, is still running interference for the Obama administration, pretending that all this is the fault of Republicans and that somehow Democrats had no part in any of it. The very idea that Republicans might want to negotiate a mutual agreement rather than bowing down to the destructive wrath of Obamacare is heavily and repeatedly criticized by the media. How dare you want to negotiate! Peasants don’t negotiate with kings! They bow down and kiss feet!

You are watching the slow-motion collapse of the U.S. government

What you are witnessing here is the utter failure of the U.S. federal government — a failure that may portend an even more sobering failure soon to come.

This is a government that has:

• Run out of money
• Run out of credibility
• Run out of ideas
• Run out of trust from the People
• Run out of excuses for its utter abandonment of law, justice and the will of the People

Maybe it’s time that We the People ran them all out of Washington, eh? It’s certainly clear to the American people at this point that virtually no one in Washington represents their interests anymore… the exceptions being a very small number of stoic defenders of fundamental freedom like Rand Paul and Ted Cruz. For their efforts to stand firm against the government steamrolling the entire economy into oblivion, they are being called “anarchists” by Sen. Majority Leader Harry Reid, an all-out wretched apologist for endless, cancerous growth of the institution of government.

What happens if 25 million federal paychecks suddenly stop?

As I’m watching all this, I can’t help but wonder just how much more the American people are going to take before they fill the streets in protest. Or, even worse, what happens if the so-called “desperate measures” now being invoked by the Treasury can’t hold out long enough and the entire system goes into financial default?

What happens in just one week across America if all the people dependent on government don’t receive their paychecks? Imagine: 25 million full-time and part-time federal employees suddenly waking up and realizing there is no paycheck; there is no retirement; there is no free health care and there is no “faith and credit of the United States government.”

I could tell you almost exactly what’s going to happen when that day comes, but you probably wouldn’t believe it anyway, so I’ll save that explanation for when the time is right. But I will give you the hint (wink wink) that you’d better brush up on reading www.SurvivalBlog.com and buy everything ever written by James Wesley Rawles, because unless an unprecedented holy miracle occurs that defies the laws of economics, there is no saving the U.S. government from its own financial destruction.

If the U.S. government were a hospital patient, you’d pull the plug out of sheer mercy

The only real question is how long it will take for the People to finally lose sufficient faith in this failed government to actually pull the plug and shut it down permanently. If you think of the U.S. government as a hospital patient, it’s being kept alive with an artificial lung, an IV feeding tube, a cocktail of toxic blood thinners and a bedside defibrillator. The crash cart is on standby and the heart monitor is showing a failing pulse headed towards flatline.

The Fed stands ready with a syringe full of adrenaline (labeled “Quantitative Easing”), but the patient has already been injected fifty-seven times, and no one knows how much more the patient’s heart can handle before exploding.

At some point, it’s all such a horrifying wreck that you just pull the plug and pray for the suffering to end. That’s where I believe America is ultimately headed: a collapse, a rebirth, and hopefully a new era of abundance without the onerous burden and interference of a government gone insane.

All Debt To Be Erased Within The Next Few Months

by Gregg Prescott, M.S.

Right on schedule, banking systems are collapsing and will result in the elimination of all debt, according to Bix Weir, who has 30 years experience in the financial industry with various fortune 500 companies.

As mentioned numerous times on In5D, we are currently under the energies of Pluto In Capricorn, which will continue to bring an end to all sources of control and manipulation, including the banking systems, governments and religion. Pluto entered Capricorn in 2008 and, right on schedule, we saw the collapse of hundreds of banks.

For those who question the power of how astrological alignments dictate what is happening right now, look no further than the last time when Pluto was in Capricorn. During that time period, we saw both the French and American Revolutions. If you look around the world, there are revolutions either currently going on or are about to explode, so it is NOT a coincidence that we are seeing this happen once again.

“We are at a point in our system and in the manipulation where there are people within the Fed, and within our government, who are ready to pull the plug on the game and basically crash the system,” stated Weir.

Many people will question whether this is a controlled demolition of the financial system in order to implement a one world currency, which is a valid concern, but the current financial system based on fiat currency cannot sustain itself as it creates money out of thin air and charges interest on it. In other words, it is going to collapse whether you want it to or not. The most important issue is deciding what form of currency will be its replacement and if there is any assurance of whether this new system will inevitably collapse as well.

Right now in the United States, the U.S. debt is more than all of the money on the planet so it is impossible to repay. The only other solution is to eliminate all debt and create a new asset based currency that does not rely on creating money out of thin air.

During the last bailout in 2008 after the housing boom, we saw a huge derivatives explosion which is due to crash the system in a few months. Derivatives are basically when a bank sells the obligation of the mortgage holder to another company and in essence, bets on the failure of the homeowner to fall into foreclosure. There is no way the Fed can bailout the trillions of dollars in derivatives so the only other option will be to eliminate all debt and create an asset based currency.

The Fed still continues to pump fiat currency into a rising stock market that should have begun collapsing in 2008, create a false sense of security for those who have stocks. This too, will collapse.

Will this happen in other countries as well?

Once the big banks fall in the United States, all other banks will follow. Weir stated, “If you take down the banks, you take down every individual checking, savings, 401K (etc…). Everyone holds their money in banks, even the brokerage houses. The derivative situation is such a mess that once a couple of those big banks go (under), every other counter party will fall, too. So you’re looking at a complete wipeout of all debts in all banks.”

Greg Hunter added that we have $10.8 trillion in deposits with (only) $33 billion in the FDIC deposit insurance fund and a line of credit worth $100 billion in the Treasury. In other words, there isn’t anywhere near enough money to back all of the depositors. Weir added that the FDIC also insures all of the derivatives for JP Morgan and the Bank of America for hundreds of trillions of dollars.

What will happen to any money we have in the bank?

Weir mentioned an example where a person might have $10,000 in the bank along with $200-300,00 mortgage IOU’s. In this situation, the person would lose the money in their account, but would not have to pay off the mortgage to his or her home.

Weir added, “The people who will lose out the most are those people who are completely out of debt with a savings account in a bank that they thought was AAA rated.”

When will this happen?

According to Weis, the collapse should happen anytime from August to October of this year.

Will Federal Reserve notes be honored until the new currency arrives?

According to Weir, he believes that this would be a good plan but it would only work for those who have physical Federal Reserve notes versus having money in the bank, “at least for a little while.”

Gold and silver

Hunter added to be sure to buy rolls of quarters and half dollars because they are printed by the Treasury and not the Federal Reserve.

As his number one investment, Weir recommended to buy pre-1965 silver coins because “everybody will be scrambling for gold and silver. It would be the last theoretical form of money that people have. People are starting to wake up now and when they can’t get money out of their bank that defaulted, that’s when you’re really going to se people scrambling for physical gold and silver in your possession.”

The moment the banks are no longer manipulating the gold and silver market is the moment that these metals go “limit up. You will not really know the price of silver and gold for a while because it’s the anti-dollar.”

Redistribution and reallocation of money

The US Dollar is the longest lasting currency that is not backed by assets and history will dictate, every previous currency that was not backed by assets has collapsed.

In the United States, people will receive new currency based on how much money they paid into Social Security, where those who worked the hardest and paid into Social Security while those who are young and working will get more as they work more.

At this time, it is unclear how other countries will allocate and redistribute money.

The elimination of debt should create numerous immediate benefits, such as the significant lowering of rent due to the owner no longer having debt on his building, house or apartment along with a lower cost of goods and services for the same reason. In other words, prices for everything will drop significantly from what we are paying today.

According to Weir, it might take “a few weeks to reallocate money” so there might be a transition period where grocery stores and other businesses may temporarily close. You want to be sure to have enough food and water stored up to cover you and your family for up to several months.

“The government knows that this is going down quickly. These banks cannot survive much longer. They are literally on their knees and the main stream media is not going to tell you about it, but in the financial world, we all know about it.”

Whether or not the banking collapse happens between now and October remains to be seen. What we already know is that our current system is unsustainable and its collapse it’s inevitable. It’s only a matter of time.